Triggerless CDO Strategy Takes Advantage Of Sub-Prime Smash

Investors that have participated in asset-backed securities by buying into triggerless sub-prime collateralized debt obligations have profited from mark-to-market gains as the overall sub-prime market has gotten pounded.

16 Mar 2007

Investors that have participated in asset-backed securities by buying into triggerless sub-prime collateralized debt obligations have profited from mark-to-market gains as the overall sub-prime market has gotten pounded.
In triggerless deals the coupon on the equity tranche keeps paying no matter the losses, as there are no over-collateralization
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